Blousson Company has two sequential processing departments: Assembly then Shaping.The Shaping Department reports the following information.Conversion costs are applied evenly throughout the process. $\begin{array}{|l|r|}
\hline \text { Beginning WIP inventory } & 7,000 \text { units } \
\hline \text { Transferred-in costs in beginning WIP inventory } & \$ 98,000 \
\hline \text { Direct materials costs in beginning WIP inventory } & \$ 24,500 \
\hline \text { Conversion costs in beginning WIP inventory } & \$ 22,750 \
\hline \text { Units transferred-in } & 45,000 \text { units } \
\hline \text { Transferred-in costs } & \$ 630,000 \
\hline \text { Units completed } & 42,000 \
\hline \text { Costs added: materials } & \$ 155,040 \
\hline \text { Costs added: conversion } & \$ 230,710 \
\hline \text { Ending WIP inventory } & 10,000 \text { units }\
\hline \text { (50\% complete for materials and $ 40 \% $ complete for }\
\text { conversion)}\
\hline
\end{array}$
What would have been the journal entry to record the transfer of product from the assembly department to the shaping department?

Question

Blousson Company has two sequential processing departments: Assembly then Shaping.The Shaping Department reports the following information.Conversion costs are applied evenly throughout the process. $\begin{array}{|l|r|}
\hline \text { Beginning WIP inventory } & 7,000 \text { units } \
\hline \text { Transferred-in costs in beginning WIP inventory } & \$ 98,000 \
\hline \text { Direct materials costs in beginning WIP inventory } & \$ 24,500 \
\hline \text { Conversion costs in beginning WIP inventory } & \$ 22,750 \
\hline \text { Units transferred-in } & 45,000 \text { units } \
\hline \text { Transferred-in costs } & \$ 630,000 \
\hline \text { Units completed } & 42,000 \
\hline \text { Costs added: materials } & \$ 155,040 \
\hline \text { Costs added: conversion } & \$ 230,710 \
\hline \text { Ending WIP inventory } & 10,000 \text { units }\
\hline \text { (50\% complete for materials and $ 40 \% $ complete for }\
 \text { conversion)}\
\hline
\end{array}$
 What would have been the journal entry to record the transfer of product from the assembly department to the shaping department?

Quizplus · Accepted Answer

The journal entry to record the transfer of product from the assembly department to the shaping department would debit WIP-Shaping and credit WIP-Assembly for the transferred-in costs of $630,000.

Blousson Company Has Two Sequential Processing Departments: Assembly Then Shaping